Decision on Chapter 11 by Court of Appeals for the Third Circuit

On March 26, 2010, Cravath issued to its clients a memo entitled “Debtors May Preclude Secured Lenders from Credit Bidding in a ‘Free-and-Clear’ Sale in a Chapter 11 Cram-Down Plan.” The memo discusses the Court of Appeals for the Third Circuit’s decision that allows a Chapter 11 debtor to evade the secured lenders’ protection of credit bidding at a sale of the secured lenders’ collateral.

Please click here to read the memo.